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Dell’Oro Group Reports Optical Transport Market Grew 9 Percent in the First Quarter of 2006

Robust North American Market Offsets Weaker European and Asian Markets

REDWOOD CITY, Calif. – June 07, 2006 –According to a newly published report by Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, the worldwide Optical Transport market grew 9 percent in the first quarter of 2006 compared to the prior year. The report indicates that sales of optical equipment were especially strong in North America, where service providers such as AT&T and Verizon are investing heavily in their fiber optic networks. Slightly declining sales in Europe and Asia partially offset the growth in North America.

“Video over broadband services are driving optical equipment demand in North America,” said Shin Umeda, Principal Analyst for Optical Transport Research at Dell’Oro Group. “On the other hand, the market in Europe has weakened considerably over the last six months, leading us to temper our global outlook for 2006,” he added.

Worldwide Optical Market Leaders (Revenue)

Optical Transport Market	1Q06	Y/Y Growth
MFG Revenue	$2.1 billion	9%

Vendor	Rank	Y/Y Growth
Nortel	1	40%
Lucent	2	50%
Alcatel	3	3%
Fujitsu	4	-9%

About the Report

The Dell’Oro Group Optical Transport Quarterly Report offers complete, in-depth coverage of the market with tables covering manufacturers’ revenue, average selling prices, unit shipments Tributary/Line or Wavelength shipments (by speed OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, OC-192/STM-64, OC-768/STM-256, and Other). The report tracks DWDM long haul terrestrial, DWDM metro, SONET/SDH ADM, SONET/SDH multiservice, and optical switch equipment. To purchase this report, call +1.650.622.9400.

About Dell’Oro Group

As the trusted source for market information about the networking and telecommunications industries, Dell’Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions. For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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